The Securities and Exchange Board of India has approved the Draft Red Herring Prospectus (DRHP) of Adani Wilmer, an equal joint venture between Adani Enterprises Ltd, and Wilmar International Ltd., and Chennai-based Star Health and Allied Insurance, CNBC-TV 18 reported on Friday.
With the approval of DRHP submitted before the SEBI, Adani Wilmer — the owner of the popular cooking oil brand Fortune — will be able to float an initial public offering (IPO) to raise around Rs 4,500 crore with fresh issuance of equity shares. The move will make Adani Wilmer, the only FMCG venture of the Adani Group, the seventh firm of the port to power conglomerate to be listed.
The IPO is expected to increase the momentum of growth of Adani Wilmer by expanding its market visibility and awareness among current and potential customers, sources cited by CNBC-TV 18 disclosed.
Meanwhile, Rakesh Jhunjhunwala backed Star Health and Allied Insurance is planning for a Rs 5,500 crore initial public offering after receiving the nod from SEBI. The IPO will comprise fresh issuance of equity shares worth Rs. 2000 crore and an Offer For Sale (OFS) of up to 6,01,04,677 equity shares by existing promoters and shareholders of the company.
The OFS comprises the selling of 3,06,83,553 equity shares by Safecrop Investments India LLP, 1,37,816 equity shares by Konark Trust, 76,80,371 equity shares by Apis Growth 6 Ltd, and 74,38,564 equity shares by the University of Notre Dame Du Lac, among others. According to the approved DRHP filing, ace investor Rakesh Jhunjhunwala will not be selling his shares.
The company is looking to employ net proceeds from the IPO for the development of the company’s capital base, and maintenance of solvency levels. As per the DRHP filed in July, the OFS money will go to selling shareholders.